Analyzing of Competitiveness of
Wilmington, Delaware
James H. Johnson, Jr., Ph.D.
Tarin Washington
Frank Hawkins Kenan Institute of Private Enterprise
Kenan-Flagler Business School
University of North Carolina at Chapel Hill
Chapel Hill, North Carolina 27599-3440
October 2006
2
Table of Contents
•
Executive Summary
•
Introduction, Critical Background, and Purpose
•
Methodology
•
The Study Area
•
Demographic Profile
•
SWOT Analysis
•
Summary and Recommendations
•
•
Appendix
Table A1: Summary of SWOT Results
3
List of Tables
1. Types of Community Capital Assets
2. Questions Posed in a Community-Level SWOT Analysis
3. Gateways and Databases Used in the Research
4. Key Demographic Characteristics: Wilmington and State of
Delaware, 2000 & 2005
5. Income, Poverty, and Adult Education: Wilmington and State of
Delaware, 2000
6. Distribution of Jobs by Industrial Categories: Wilmington and State
of Delaware, 2000
List of Figures
1. A Business-oriented Conceptual Model for Enhancing Community
Competitiveness
2. Population by Sex and Age, Wilmington, Delaware
4
Executive Summary
Using a conceptual model anchored in recent research on community
competitiveness and information culled from a fifteen-year survey of several
electronic databases, Wilmington’s ability to compete in the new economy is
evaluated by assessing the strengths, weaknesses, opportunities, and threats
inherent in its existing stock of polity, financial, physical, human, cultural, and
social capital.
The findings suggest strongly that, given its locational advantages and natural
attributes, Wilmington has the opportunity to become a highly attractive place
to live and do business. There are, however, major challenges which must be
overcome if the community is to become highly competitive in the 21st century
knowledge-based economy. Local officials need to resolve the (1) low levels of
education attainment in the African American and Latino communities; (2)
fiscal problems and low revenue base resulting from 42% of the land being
exempt from taxation; and (3) potential race/ethnic tensions and conflicts
resulting from growing population diversity.
To address these issues and to strategically reposition Wilmington to compete
in the years ahead, we recommend the following:
Recommendation
#1:
Improve
educational
opportunities
for
underrepresented minority and ethnic groups.
Highly competitive
communities rely on an educated workforce. Partnerships between business,
education and government institutions are the key to preparing citizens to
compete in a knowledge-intensive and technology-driven society. Innovative
education partnerships like the one that created the Charter School of
Wilmington, must be forged more broadly in the region, especially in areas with
high concentrations of African-American and Latino youth.
Recommendation #2: Develop additional job training programs to
support unemployed and underemployed workers, as well as retain key
employers. Job training programs that serve as a pipeline to industry will
encourage business retention and growth. Specifically, more initiatives are
needed that support training in mathematics, technology, biotechnology and
other sciences. Such training will better position the County as a player in
knowledge driven economy of the 21st century.
Recommendation #3: Cultivate working and supportive relationships
with the Latino immigrant population. Census estimates indicate that
Delaware’s Latino population will continue to grow for years to come.
Proactively addressing their needs and finding mechanisms for bringing them
into the social and business mainstream of the community will prove
advantageous to economic development efforts.
5
Recommendation #4: Build upon the community’s reputation as a
proactive business environment and its well-developed transportation
infrastructure to increase international trade activity. Implementing
policies that maintain favorable tax incentives and foster diversified business
opportunities should increase foreign investment in the area and provide
significant sources of employment for existing and newly trained workers.
Recommendation #5: Continue support of gaming industry. Enhancement
of regulations to attract and retain gaming operations will provide employment
opportunities and a significant revenue source through tourism. In supporting
the gaming industry, local officials should adopt strategies advocated in other
cities to ensure that the advantages outweigh the potential negative effects of
gaming operations.
6
Introduction, Critical Background, and Purpose
Research indicates that communities that have proven to be attractive
places to live and do business in the 21st century knowledge-based economy
possess a distinct set of characteristics. Highly attractive and competitive
communities:
•
Actively and aggressively pursue strategic alliances with other
communities, domestically and especially internationally, with an eye
toward developing not only cultural ties but also profit-centered
activities that generate revenue and create jobs for the local citizenry.
•
Create a regulatory environment that promotes and supports the
generation of new community wealth via civic entrepreneurial ventures
and innovations that are designed specifically to sustain and enhance
the health, viability, and vitality of the community.
•
Recognize the need for, and are committed to continuous investment
in, a world-class physical infrastructure that connects them to the
regional, national, and international economy.
•
Invest heavily in their educational system (K–12, community colleges,
and four-year institutions) to ensure the availability of education and
training programs for their citizens so that they can compete for new
economy jobs, thereby enhancing the community’s attractiveness to
businesses.
•
Instill in their citizens, especially their youth, the attitudes, values, and
beliefs about education and work that are key to upward mobility in
the knowledge-based economy of the 21st century.
•
Strive to reduce, to the maximum extent possible, geographical, racial
and/or ethnic, and class disparities by investing substantial resources
in an array of community-building institutions (e.g., the YMCA, the
YWCA, and the Boys and Girls Club) that seek to mend the social
fabric and provide bridges to education and economic mainstream for
their members, especially those who are socially and economically
disadvantaged.
Under-girding these characteristics, as Table 1 shows, are six types of
community capital assets — polity, physical, financial, human, cultural,
7
and social—which interact, as specified in Figure 1, to create a healthy,
highly competitive community.1 It is important to note that the absence of
any one of these six types of capital can seriously limit the ability of a
community to compete in the 21st century marketplace. But, as Figure 1
shows, it is the polity capital (i.e., the local government), which creates the
conditions or climate enabling the other five types of capital to drive
competitiveness. In highly competitive communities, government decisionmaking is agile and flexible, not static or bureaucratic.
Assuming the
business-equivalent role of managing partner, the local government is
prepared — almost on an ad hoc basis — to foster or facilitate networks and
linkages among key community stakeholders to build or develop the
requisite physical, financial, human, cultural, and social capital to facilitate
community economic health and competitiveness.2
1
For a detailed discussion of the theoretical underpinnings of our model of community competitiveness, see James
H. Johnson, Jr., 2002a, “Enhancing the Competitiveness of North Carolina Communities,” Popular Government,
Winter, pp. 6-18; James H. Johnson, Jr., 2002b, U.S. Immigration Reform, Homeland Security, and Global
Economic Competitiveness in the Aftermath of the September 11, 2001 Terrorist Attacks,” North Carolina Journal
of International Law and Commercial Regulation, Vol. 27, pp. 419-464.
2
To play this role effectively, the local government in a highly competitive community typically establishes a
knowledge management system and data warehouse, which enables it to monitor trends and developments internal
and external to the community in real time. For a detailed discussion of the importance of having such a system in
place, see Don A. Holbrook, 1995, “”Economic Development Facing up to the 21st Century,” IEDN’s Economic
Development Intelligence Reports, available at
http://iedn.come/information/intelligence/articles/edirfacing21st_cent10595.html,accessed March 28,2003; and
IEDN, 1996, “Site Selection Trends in the Electronic Era & Global Economy.” IEDN’s Economic Intelligence
Reports, January, available at http://iedn.com/infomration/intelligence/articles/janedire.html, accessed March 27,
2003; IEDN, 2000, “Rural Economic Development Issues for the 21st Century,” IEDN’s Economic Development
Reports, January, available at http://www.iedn.com/information/intelligence/articles/FEBEDIRE, accessed March
28, 2003. .
8
Table 1: Types of Community Capital Assets
•
•
•
•
•
•
Polity Capital: commitments from local government organizations to
continuously strive to enhance the health and socioeconomic well being
of local residents and advance the competitiveness of the local
community in the global marketplace.
Physical Capital: the network of highways, railways, airports,
telecommunications (telephone, Internet, etc.) and water and sewer
systems that form the infrastructure of the community.
Financial Capital: traditional and non-traditional sources of revenue
that support the provision of services and promote future economic
growth and community development.
Human Capital: individuals with the requisite education, training, and
“soft” skills to compete for jobs in the highly integrated world economy.
Cultural Capital: residents with the appropriate values, attitudes, and
beliefs about their current life chances and their future opportunities in
the local community.
Social Capital: resources – personal and institutional – through which
individuals maintain their social identity and receive emotional support,
material aid and services, information, and new social contacts.
Source: Johnson (2002a).
Depending on the nature of the issue, these networks may be industryor sector-specific, ethnic-based, or regional in composition.3
In some
instances, they may involve business leaders who are staunch competitors in
the local marketplace. In highly competitive communities, leaders of competing
businesses often work together to solve local problems because they recognize
that their “coopetition” or “competitive collaboration” will ultimately benefit
3
Joel Kotkin, 1998, “Cities Need Leaders … and Businessmen are Indispensable,” The American Enterprise,
September/October, Vol. 9, pp. 24-26+.
9
their respective companies.4 In other words, it is a form of enlightened selfinterest.
Figure 1
A BUSINESS-ORIENTED CONCEPTUAL MODEL FOR ENHANCING
COMMUNITY COMPETITIVENESS
Polity Capital
Physical
Capital
Human
Capital
Social
Capital
Financial
Capital
Cultural
Capital
Healthy/Competitive Communities
Sources: Compiled by authors based on Johnson (2002a).
In the remainder of this report, we apply this model in a case study
assessment of the current competitive position of Wilmington, DE. We begin by
describing the methodology employed to operationalize the model.
4
John K. Conlon and Mellisa, Givagnoli, 1998, The Power of Two. San Francisco: Jossey-Bass, Inc.
Next, we
10
provide a demographic and socioeconomic profile of Wilmington, DE and then
present the results of the competitive assessment.
METHODOLOGY
To operationalize the model, we conducted a community-level SWOT
analysis, which identifies the internal (Strengths and Weaknesses) and external
(Opportunities and Threats) forces that shape an area’s overall health,
economic well-being, and attractiveness as a place to live and do business.
5
As Table 2 shows, such an analysis strives to answer specific questions about
the community’s strengths, weaknesses, opportunities, and threats.
Table 2: Questions Posed in a Community-Level SWOT Analysis
Strengths
• What does the community do well?
• Does the community have a clear strategic vision?
• Does the community have an entrepreneurial orientation?
• Does the community culture produce a healthy environment in
which to live and do business?
Weaknesses
• What could be improved in the community?
• What does the community do poorly?
• Is the community able to finance needed infrastructure?
• Does the community have poor debt or cash flow?
Opportunities
• What favorable circumstances is the community facing?
• What are the interesting trends?
• Is the community positioned to take on those trends?
5
Don A. Holbrook, 1995, “”Economic Development Facing up to the 21st Century,” IEDN’s Economic
Development Intelligence Reports, available at
http://iedn.come/information/intelligence/articles/edirfacing21st_cent10595.html,accessed March 28,2003; and
IEDN, 1996, “Site Selection Trends in the Electronic Era & Global Economy.” IEDN’s Economic Intelligence
Reports, January, available at http://iedn.com/infomration/intelligence/articles/janedire.html, accessed March 27,
2003; IEDN, 2000, “Rural Economic Development Issues for the 21st Century,” IEDN’s Economic Development
Reports, January, available at http://www.iedn.com/information/intelligence/articles/FEBEDIRE, accessed March
28, 2003. .
11
• Is the community advanced in technology?
Threats
• What obstacles does the community face?
• What are the community’s competitors doing?
• Are the demographic and economic conditions changing?
• Is technology threatening the community’s competitiveness?
• What policies are state and federal lawmakers backing?
• Do the policies affect the community and, if so, how?
Source: Compiled by authors.
To answer these questions for Wilmington, DE, our case study
community, we engaged in the same type of community competitiveness
intelligence gathering that a corporate relocation consultant pursues to develop
a short list of ideal sites for a client’s business relocation or expansion6. That
is, we conducted an exhaustive search of publicly-available information using
the electronic search engines and research indexes identified in Table 3.
We used Wilmington and New Castle County as place identifiers and
combined this information with an array of search terms culled from prior
research on community competitiveness. The search, which included mainly
newspaper and popular articles, technical reports, government documents, and
statistical information, spanned a fifteen-year period, 1991 to 2006.
Much
information was gained directly or indirectly (through links) from the
Wilmington and New Castle County government web sites. The communitylevel SWOT results discussed below are based on our content analysis of these
search results.
6
IEDN, 1996, “Site Selection Trends in the Electronic Era & Global Economy.” IEDN’s Economic Intelligence
Reports, January, available at http://iedn.com/infomration/intelligence/articles/janedire.html, accessed March 27,
2003
12
Table 3: Gateways and Databases Used in the Research
GATEWAYS
DATABASES
AltaVista.com
Google.com
Yahoo.com
ABI Inform/ProQuest
Topix.net
All Business Websites
General Search Engine
General Search Engine
Periodicals and Newspapers
Newspapers
ProQuest
All Articles
Lexis/Nexis
Academic Universe
Statistical Universe
Government Periodical Universe
Source: Compiled by authors.
DEMOGRAPHIC PROFILE
Wilmington, Delaware—defined for purposes of this analysis as all of New
Castle County—had 523,008 residents in 2005, a 4.5% increase over the
Census 2000 count of 500,265. This is a slightly slower rate of growth than
the 13.2% growth Wilmington experienced during the 1990s.7
As shown in
Table 4, 73.1% of New Castle County’s residents are white, 20.2% are AfricanAmerican, and 5.3% are Latino. During the 1990s, the white population grew
by just over 10,000 (%), the African American population grew by 28,331, and
the Latino population more-than doubled.
6.5% of New Castle County’s residents.
7
http://quickfacts.census.gov/qfd/states/10000.html
By 2004, Latinos accounted for
13
Table 4: Key Demographic Characteristics of Wilmington and State of
Delaware
Wilmington
State of
Delaware
523,008
4.5%
843,523
7.6%
% Female
51.4%
51.3%
% <15
% >65
20.9%
11.6%
20.7%
20.5%
Total Population, 2005
Population Change, 20002005
% African American
20.2%
%White
73.1%
% Latino
5.3%
Source: Summary File 1, Census 2000, www.census.gov
19.6%
72.3%
4.7%
Figure 2 depicts the age-sex structure of the Wilmington area. Almost a
quarter of Wilmington’s population is under age 15, and 11.6% are age 65 or
older. Unlikely to be full-time workers, these two age groups are often referred
to as “dependent” populations since they typically rely on either family or
institutions (e.g. Social Security) for support.
14
The median household income in Wilmington ($52,419) was significantly
higher than the national median household income ($41,994) in 2000
Similarly, the median family income in Wilmington ($62,144) was also well
above the national average ($50,046). However, as shown in Table 5, there are
considerable racial and ethnic variations in income in Wilmington. In 2000,
the median white household income was $56,877, compared to $38,232 for
African-Americans and $36,781 for Latinos.
A similar disparate pattern
existed in terms of median family incomes: $67,619 for white families, $43,037
for African-American families, and $37,568 for Latino families. Poverty rates
15
also varied significantly among these groups, with only 5.5% of white
individuals living in poverty compared to 17.2% of African-Americans and
22.3% of Latinos in 2000.
Table 5: Income, Poverty, and Adult Education by Race, Wilmington, DE,
2000
African
Wilmington White American Latino
Median
Income
Household
$52,419 $56,877
$38,232 $36,781
Family
$62,144 $67,619
$43,037 $37,568
% Poverty
8.4%
5.5%
17.2%
22.3%
Education
(25+)
<12 Years
14.5%
12.2%
22.1%
40.5%
High School
29.6%
29.4%
34.0%
24.1%
Some
College
26.3%
26.5%
27.9%
21.1%
College
Graduate
18.5%
20.2%
10.7%
9.3%
Post
Graduate
11.0%
11.6%
5.3%
5.0%
Source Summary File 3, Census 2000, www.census.gov
Table 5 also shows the distribution of educational attainment for adults
age 25 and older for all of Wilmington and separately for white, AfricanAmerican, and Latino adults.
The overall distribution of educational
attainment in Wilmington is better than the national pattern, with lower
proportions having less than a high school education (14.5% compared to
19.6% nationally) and higher proportions holding a bachelor’s degree (18.5%
compared to 15.5% nationally). White adults fare even better at 12.2%, but
African-American and Latino adults lag well behind. Roughly one fifth (22.1%)
16
of African-American and 40.5% of Latino adults have less than a high school
education. About half as many African-Americans and Latino adults have a
bachelor’s degree or post-graduate education compared with whites.
Table 6 shows the distribution of employment by industry in Wilmington.
Six industry categories are highlighted: (1) Primary activities (agricultural and
mining); (2) Transformative activities (manufacturing and construction); (3)
Distributive services (transportation, communication, wholesale and retail
trade); (4) Producer services (finance, insurance, real estate, and business
services); (5) Personal services (entertainment, repairs, food and beverage), and
(6) Social services (medical, education, and government).
Table 6: Distribution of Jobs by Industrial Categories: Wilmington and
State of Delaware, 2000
Wilmington
19.2%
State of
Delaware
20.2%
Distributive Service
(e.g. transportation,
communications,
wholesale and retail trade)
17.8%
18.8%
Producer Services
(e.g. finance, insurance, information
services and other business services)
27.4%
22.4%
Personal Services
(e.g. entertainment, food services)
11.4%
10.2%
Social Services
(e.g. health care, education, government)
23.6%
24.2%
0.5%
1.1%
Transformative Activities
(e.g manufacturing and construction)
Primary Activies
(e.g agriculture)
Source: Table P49, Summary File 3,
Census 2000
17
Over one quarter of jobs (27.4%) are in the high-paying producer services
sector, much higher than the national figure (19.3%). This is clearly a positive
element in Wilmington’s economy. The second largest sector is social services,
followed by transformative activities and distributive services.
SWOT Analysis
If New Castle County is to enhance its competitive position in an everchanging, global society, it is imperative that all stakeholders in the County
acknowledge the community’s challenges and leverage its advantages. Below,
we present the most salient findings of our SWOT (strengths, weaknesses,
opportunities and threats) analysis.
A summary of the SWOT findings are
presented in Appendix Table A1.
STRENGTHS
Among New Castle County’s greatest strengths are its polity capital
assets and its strong pro-business climate.
Over half of the Fortune 5008
companies call Wilmington home due to the state’s favorable corporate
franchise tax laws and its nationally recognized Court of Chancery9. Prominent
industries include banking, insurance, and legal services. Over 60 banks –
state, regional, and national – are located in the Wilmington area. This is likely
due in part to the Financial Center Development Act of 1981, which eliminated
8
9
http://www.city-date.com/us-cities/The-South/Wilmington-Economy.html
In the Court of Chancery, legal decisions rest with a judge instead of a jury.
18
usury laws, thereby removing the cap on interest rates that banks may legally
charge customers10.
The County offers a host of services for small- and minority-owned
businesses through its Minority Business Enterprise Office (MBEO) and the
World Trade Center Delaware.
Various initiatives assist disadvantaged and
new or expanding businesses with shared resources, training, partnerships,
loans,11 and international expansion12. Such initiatives promote a culture of
entrepreneurship and an exchange of information that is vital to business
success.
Another initiative, the Christina Gateway Corporation (CGC), was created
25 years ago as a city and state government partnership to promote
development in the Christina Gateway area of the city. This commercial center
encompasses the area covering the eastern sector to the waterfront.
The
New
Castle
County
Economic
Development
Council
website
(http://www.nccedc.com) is user-friendly and offers a wealth of information
that is useful to persons and/or businesses relocating to the area. The New
Castle County Chamber of Commerce website (http:///www.ncccc.com),
although slightly less robust, has detailed information on resources available to
support business investments and create a prosperous economy.
Services
include Business Programs (tours, small business training workshops);
Consultant, Environmental and Engineering, and Home-Based Business
10
http://www.answers.com/topic/wilmington-delaware
http://www.ci.wilmington.de.us/mbeo.htm
12
http://www.wtcde.com - World Trade Center Delaware
11
19
Forums (professional growth and development); Networking Breakfasts and
Mixers; Roundtable Program (quasi Board of Directors); Video Luncheon Series
(presenters include leading corporate executives, consultants or academics);
and a Small Business Newsletter.
The website of the County Executive
(http://www.nccde.org) promotes transparency between government and
citizens.
It is quite comprehensive, providing detailed information on all
aspects of county government, including finances/budget, maps, land use,
deeds, emergency planning, employment, and housing.
Regarding the County’s financial situation and leadership, the County
enjoys AAA bond ratings from each of the major bond rating agencies.
The
ratings are enhanced by a County Executive who is focused on sound fiscal
and budget management, and growth through cost cutting and spending
restraints, which is evidenced by currently strong financials, with significant
reserves13.
Management practices are supported by a proposed FY 2007
budget that focuses on affordable housing and problem properties, quality of
life issues (safety, water and sewer,) youth activities, and support for the
diversification and sustainability of economic growth through jobs, innovation
and redevelopment14.
Additionally, Wilmington has strong leadership in the
newly appointed director of the Wilmington Office of Economic Development
who brings significant experience across state (state representative), city (city
council member) and corporate (DuPont)15 sectors.
13
http://www.dscc.com - Delaware State Chamber of Commerce
http://co.new-castle.de.us/countyfinances - Comprehensive Annual Budget Summary 2007
15
http://www.ci.wilmington.de.us/mayorpress/2006/0705_pinto_econdev.pdf
14
20
As Table 7 shows, New Castle County boasts unemployment rates that
are consistently equal to or less than the city of Wilmington, the state of
Delaware and the nation as a whole.
TABLE 7: Unemployment Rates for Wilmington MSA, State of Delaware,
and U.S., 2004-2006
Apr 2006
5.2%
Dec 2005
4.9%
Wilmington
New Castle
3.7%
4.1%
Co.
State of
3.7%
4.4%
Delaware
United
4.7%
4.9%
States
Source: Current Population Survey
Further support of the
Dec 2004
6.0%
4.0%
4.2%
5.4%
favorable business climate is evidenced by an
excellent geographic location and transportation infrastructure.
One of
Wilmington’s greatest resources is its location nestled between the Cape Fear
River and the Atlantic Ocean. Wilmington lies at the fall line that separates the
flat coastal plain from the hilly areas to the west. East of Market Street, and
along both sides of the Christina River, the land is flat, low-lying and marshy in
some places. The west side of Market Street is hilly and rises to a point that
marks the watershed between the Brandywine and the Christina Rivers. The
County’s landscapes vary from the rolling hills and forest covered “Chateau
Country” in the north, to farmland and tidal marshes in the south. The area is
located mid-way between New York City and Washington, DC - approximately
21
100 miles in each direction and approximately 25 miles southwest of
Philadelphia, PA.
Amtrak serves the community with rail transportation to all nearby
metropolitan areas. Greater Wilmington is easily accessible by I-95, from
Pennsylvania or Maryland and points south, and by I-295 and the New Jersey
Turnpike via the Delaware Memorial Bridge from New Jersey and points north.
Freight rail service is provided by CSX and Norfolk-Southern.
New Castle Airport (ILG) is located five miles from downtown Wilmington.
It has three major runways, ten taxiways, and several aircraft parking ramps.
Facilities for private aircraft are provided and several charter flight companies
are available at the airport. The airport houses fleets of aircrafts maintained by
local corporations. The facility also serves as a center for aircraft sales and
service and contains a recently expanded international flight safety training
facility. Boeing Vertol Aircraft has a flight test center at the airport where the
V-22 Osprey tilt rotor aircraft is tested.
Philadelphia International Airport, located 30 minutes from downtown
Wilmington, provides an extensive schedule of national and international
flights as well as complete freight operations. In addition, the airport is
undergoing a major renovation and expansion that will vastly improve service
and convenience to all air travelers in the Delaware Valley.
In Wilmington and New Castle County, DART (Delaware Administration
for Regional Transit) First State provides more than 40 bus routes serving the
suburbs, park & ride lots, and downtown business district. The RT 32 City
22
Circuit bus route provides frequent service throughout the downtown area
including the Wilmington Train Station, one of the last stops on Philadelphia’s
SEPTA rail transportation system.
The Port of Wilmington16, located at the confluence of the Delaware and
Christina Rivers, and 65 miles from the Atlantic Ocean, is a full-service
deepwater port and marine terminal handling over 400 vessels per year with an
annual import/export cargo tonnage of 5 million tons. Today, Delaware's port
is the busiest on the Delaware River and it serves as the number one port in
North America for imports of fresh fruit, bananas, juice concentrate, and
palletized frozen beef.
Numerous educational institutions working to address undereducated
populations strengthen human capital assets. One such establishment is the
Charter School of Wilmington, which was founded in 1996 as an independently
operated public school managed by a consortium of six companies. Partners
include AstraZeneca, Christiana Care Health System, Conectiv (a subsidiary of
Pepco Holdings Inc.), DuPont, Hercules Incorporated, and Verizon. The school
offers a math and science college preparatory program that has received
numerous awards and accolades for top scores in the state of Delaware school
system. Achievements include highest math, science, reading, social studies,
and SAT scores, as well as a 98% college attendance rate17. The school is a
member of the National Consortium for Specialized Secondary Schools of
16
17
http://www.portofwilmingtonde.com
http://www.charterschool.org – Charter School of Wilmington
23
Mathematics, Science and Technology (NCSSSMST)18, which was established in
1988 to provide a forum for member schools to exchange information and
ideas, as well as, to create educational alliances.
Educators are dedicated to, and in many instances, succeeding in
improving student achievement in each of the four elementary school districts
(Brandywine, Christina, Colonial and Red Clay Consolidated).19
Strategic
planning involving teacher training, mentorship and leadership development,
as well as parental involvement and increased advanced placement courses
create quality instructors and students that are well prepared to enter one of
Wilmington’s four colleges or over twenty, nearby post- secondary institutions.
New Castle County has several job training partnerships to support its
workforce.
The Retail Skills Center is a coalition established to meet
workforce needs in order to match projected growth in the retail and
hospitality sectors.
The coalition includes the Delaware State Chamber of
Commerce, the Delaware Retail Council, Delaware Technical & Community
College, the Delaware Workforce Investment Board, the City of Wilmington,
and the State Department of Labor.
Training is targeted to entry-level and
senior associates, as well as managers. The City of Wilmington will form a
new Job Corps center sponsored by the Delaware Chamber of Commerce and
the U.S. Chamber of Commerce’s Center for Workforce Preparation.
The
center will be a satellite of the Philadelphia Job Corps Center that provides
18
http://en.wikipedia.org
http://www.bsd.k12.de.us; http://www.christina.k12.de.us; http://www.colonial.k12.de.us;
http://www.redclay.k12.de.us
19
24
education and job training in facility maintenance, culinary, business, clerical,
and health occupations.
The New Castle County Vocational Technical School equips students for
the labor force through internships, job shadowing, paid practicums,
cooperative employment, and mentoring in one of 34 different careers found in
six clusters:
Business, Communications, and Computers; Construction
Technologies; Health Services; Public and Consumer Services; Science, Energy
and Drafting Technologies; and Transportation.
Students are required to
complete approximately 1500 hours of specialized skills and technical
training, in addition to a full academic course load20. Nearly 57% of graduates
attend post-secondary schools.
The school also offers Adult Education
Programs for individuals interested in retraining, continuing education, or
completion of high school education requirements.
New Castle County maintains strong cultural capital through various
non-profit organizations established to provide educational, recreational,
artistic and cultural entertainment for its residents. Cityfest, Inc., a 501(c)(3)
tax-exempt corporation, solicits sponsorships and grants that subsidize the
City of Wilmington's financial and staffing contributions to arts and cultural
programs. The Mayor's Office of Cultural Affairs and other city departments,
along with volunteer community input and assistance, provides project staff
for the event. Cityfest, Inc. and the City of Wilmington are committed to
providing leadership in integrating arts and culture into the socioeconomic life
20
http://www.nccvotech.com - New Castle County Vocational Technical School
25
of the community. Events and programs include an independent film theater,
monthly art gallery walk, annual jazz festivals, documentary film festival,
Independence Day celebration, blues festival, caroling, and first night
celebration (New Year’s Eve)21.
The Wilmington Hispanic Festival is an annual three-day event that
reaches the Latino and greater Delaware community. Established in 1977, the
festival features educational and cultural events, bringing talents from across
the nation to Delaware in celebration of the diverse Hispanic traditions through
music, dance, art, food, and family activities.
Voices Without Borders/Voces Sin Fronteras is a faith-based, grassroots
advocacy, 501(c)(3) non-profit organization committed to improving the quality
of life of Latinos and Latin-American immigrants living in Delaware. Founded
in 2000, Voces seeks to promote social and institutional change by establishing
a space for dialogue and exchange between its members, members of other
organizations, and the government. Similarly, Delawarehispanic.com, the first
Hispanic Internet magazine in Delaware, serves as a resource for Latinos to
progress and improve their lives22.
The Bernard and Ruth Siegel Jewish Community Center (JCC)23, is a
non-profit membership organization, which provides the Delaware Jewish
community with educational programs (including a nationally accredited
preschool and child care program), holiday celebrations, and cultural and arts
21
http://www.ci.wilmington.de.us/departments/cultural.htm
http://www.delawarehispanic.com
23
http://www.siegeljcc.org
22
26
programming. In addition members can enjoy a state-of-the-art Fitness Center
as well as an indoor swimming pool, gymnasium and racquetball facilities.
Outdoors, a thirty-acre Family Campus adjacent to the JCC building, hosts a
wide array of recreational services.
Historic preservation is a vital part of the cultural assets found in New
Castle County.
Riverfront Wilmington preserved some of the historic sites
along the waterfront and now hosts an art museum, a theatre company,
concerts, sports games, and other events.
The Delaware History Center is
appealing because of its innovative approach to the display of history. It
combines exhibitions of nostalgic memorabilia, priceless artifacts, art, and recreations that offer a total experience designed to satisfy everyone from the
serious scholar to the casual browser. Additionally, many historic homes and
buildings are preserved as museums. Other cultural sites include the Museum
of Natural History, Kammar Nyckel (a tall ship of historical importance), and
Fort Delaware, which held prisoners of war from Stonewall Jackson's
Confederate Army.
Social capital is achieved through a plethora of activities designed to
nurture children and youth, many of which are targeted to underserved and atrisk individuals.
The Cathedral of Saint John’s Debnam House Community
Center, located in New Castle, provides mentoring and constructive activities
for high-risk youth in the Brandywine neighborhood24. Urban Promise equips
children and young adults with the requisite skills for spiritual growth,
24
http://www.delcf.org - Delaware Community Foundation
27
academic achievement, life management and Christian leadership25.
The
Ladies Professional Golf Association (LPGA) Youth Golf Program is a
community-based, risk-prevention program that utilizes golf fundamentals to
reinforce
character
discipline)26.
development
(honor,
integrity,
courtesy
and
self-
Girls Inc. of Delaware is a nationwide, youth organization
dedicated to inspiring all girls (specifically high risk and underserved) to be
strong, smart, and bold27.
The city of Wilmington through its personnel
department supports a Mentoring Coordinator who is tasked with recruiting
city employees and residents as youth mentors. Additional resources include
Boy and Girl Scouts of America, YMCA, Boys and Girls Clubs, Big Brothers and
Big Sisters, various neighborhood associations and Parks and Recreation
sponsored youth events and activities.
WEAKNESSES
While New Castle County and the City of Wilmington offer many
strengths, there are a few issues that need to be addressed.
Of utmost
importance is the need to attend to the large number of poor and
undereducated people in the area, specifically in the Latino and AfricanAmerican communities.
As these populations grow, educational attainment
becomes increasingly important. As previously noted, the most recent census
data indicates that only 10.7% of African-Americans and 9.3% Latinos
completed a college degree.
25
This suggests a declining supply of educated
http://www.urbanpromise.org
http://www.lpgakids.org - Ladies Professional Golf Association Youth Golf Program
27
http://www.girlsinc.org
26
28
workers to support business growth and retention in the area. Low levels of
educational attainment result in lower paying jobs, which, in turn, impede
access to quality housing and other community assets. Given the significant
correlation between education and earning potential, greater numbers of people
with high educational attainment are essential to combating high incidence of
poverty among African-Americans (17.2%) and Latinos (22.3%).
Of further concern is that a significant portion of the population (35%)
falls into the dependent categories of under 15 or over 65 years of age.
These
populations often consume more resources than they contribute to the
economy. Youth need to be fed, clothed, housed, educated and provided with
medical care, while the elderly have an increased need for medical and
financial (social security, pensions) support (Figure 2). Higher numbers of the
very young and the aging implies potential impending economic strain as the
elderly population must increasingly be cared for by younger generations and
supported by government programs, while those under 18 years of age typically
provide an insignificant portion of revenue in support of the tax base.
Another concern involves Wilmington’s fiscal problems and low revenue
base resulting from 42% of the land being exempt from taxation.
Also, only
50% of the city’s residents are homeowners versus 72% statewide.
Cultural and social weaknesses indicate minimal focus on diversity
programs aimed at ethnic minorities. There are no historical or cultural
institutions that celebrate and acknowledge the presence of Native Americans,
29
nor any African-American museum or other entity illustrating the history and
contributions of African-Americans in the area.
OPPORTUNITIES
The existing challenges represent a tremendous opportunity to improve
upon resources and create a better public image of the County. More can be
done to leverage the support of the area’s large financial community through
the creation of additional job training partnerships and educational initiatives
that enhance job opportunities in the higher wage producer services industry.
Proactively addressing workforce development needs by building upon existing
joint training programs between public, private and education sectors will go a
long way in preparing current and future workforces to be productive and
efficient workers. Such training will enhance continued efforts to attract and
retain commercial enterprises, as well as, position residents to own homes,
become tax-paying citizens, and potentially reduce high crime rates.
Diamond Entertainment Group LLC of Wilmington is proposing a $300
million gambling and entertainment playground on a 50 acre site on the city's
Seventh Street Peninsula.
The project, called Diamond Casino, promises to
bring 2,000 jobs to the city by creating a regional entertainment attraction
known in the industry as "casinos-plus."
Blue Cross Blue Shield of Delaware, the state's largest health insurance
company, will relocate nearly 700 people from five locations in New Castle
County to a new $35 million granite and glass headquarters on Delaware
30
Avenue in Wilmington in spring 2007. This presents an opportunity for the
city to partner with Blue Cross to provide information on preventive medical
care to underserved populations.
Of course, the construction of the new
facility brings new jobs and income that will reverberate through the local
economy.
Given the region’s well-developed transportation infrastructure, there is an
opportunity to attract more foreign investment and increase international trade
through its port of entry. A targeted marketing campaign should be developed
to provide information and support for both domestic and international
business ventures to build upon import/export capabilities.
There is a tremendous opportunity to develop services catering to the fastgrowing Latino population. According to Jayne Armstrong, District Director of
the U.S. Small Business Administration, “Hispanic-owned small businesses
represent the most significant untapped market in Delaware.” In a 2002 U.S.
Census Bureau survey of Delaware business owners, 880 firms out of 63,581
were Latino, a figure that is lower than for African-Americans and Asians,28 but
the potential for entrepreneurship among the mostly immigrant Latino
population is enormous.
In the area of polity capital, governing bodies continue to be proactive in
attracting big business. A bill was recently passed allowing Delaware to rewrite
its Captive Insurance statute29 which will enable the state to better compete
28
http://www.ncbl.com/archive/01-06coverstory.html - The Business Ledger
Captive Insurance – provided by an insurance company that only insures all or part of the risk of its parent
company.
29
31
with Vermont and other states in attracting subsidiary companies that
primarily insure larger corporations. This is an opportunity for the County to
establish a marketing plan that promotes the area as an attractive place for
captive insurance companies to conduct business.
To address financial worries, the General Assembly passed a bill to
increase revenue streams from state funds to target assessments, filing fees,
general fund proceeds, and infrastructure appropriations.
These alternative
sources will have a significant impact on continued financial stability for the
region.
Finally, current laws do not permit the enhancement and expansion of the
gaming industry. Diamond Entertainment has estimated a loss of more than
$130 million in general fund revenue for Delaware if both Pennsylvania and
Maryland legalize gambling.
Cultural and social opportunities arise with the need to develop more
social venues that attract a diverse crowd and increase awareness of
community diversity, as well as, enhance services offered to the growing Latino
community. Also, the relatively high age of the population warrants a look at
additional programs targeted to senior and elderly populations.
THREATS
The primary threat to the fabric of the community involves formal
education.
Without an improvement in the educational attainment of large
numbers of the resident population, there is likely to be an increase in the
social ills that are pervasive in many communities with high numbers of
32
undereducated and underemployed residents.
Consequently, there will be a
drain on the economic resources of the community.
Secondly, as the immigrant population expands, there is likely to be a
strain on race relations as existing populations feel threatened by newcomers.
Conflicts that begin small may be escalated or aggravated by local and national
politics (e.g., the current debate over immigration reform). Concerted efforts
must be made to alleviate the racial and ethnic disharmony through cultural
education and public policies that address the community’s concerns.
Thirdly, with Wilmington being the national financial center for the credit
card industry, and the recent and frequent mergers and acquisitions of banks,
more job cuts are likely. Wilmington residents lost jobs when MBNA and Bank
of America combined their credit card operations earlier this year.
Other job
losses in the financial services sector represent a huge potential risk to the
area given the high number of people employed in this sector.
Fourthly, although New Castle County’s current financial situation is
strong, the future is not as secure due to costs rising faster than revenue. It is
estimated that within three years, a budget deficit of $40M will occur if income
does not outpace expenses.
Lastly, the port poses a potential threat to national security in the area
given its prominence as one of the country’s top importers of a variety of goods.
It is just one of the many ports that remain vulnerable to attack.
33
SUMMARY AND RECOMMENDATIONS
We have conducted a community-level SWOT analysis in an effort to
identify ways Wilmington, Delaware can improve its attractiveness as a place to
live and do business in the ever-changing knowledge-based economy of the 21st
century.
Toward this end, we utilized a conceptual framework and
methodology for monitoring and evaluating community competitiveness
developed in the Frank Hawkins Kenan Institute of Private Enterprise, the
applied business research arm of the Kenan-Flagler Business School, at the
University of North Carolina at Chapel Hill.
From a content analysis of publicly available information accessed
through the World Wide Web, we have identified current strengths and
weaknesses as well as the opportunities and threats that Wilmington currently
faces.
The following specific recommendations flow logically from this
community-level SWOT analysis.
Recommendation
underrepresented
#1:
minority
Improve
and
educational
ethnic
groups.
opportunities
Highly
for
competitive
communities rely on an educated workforce. Partnerships between business,
education and government institutions are the key to preparing citizens to
compete in a knowledge-intensive and technology-driven society.
Innovative
education partnerships, such as the one that created the Charter School of
Wilmington, must be replicated more broadly in the region, especially in areas
with high concentrations of African-American and Latino youth.
34
Recommendation #2: Develop additional job training programs to
support unemployed and underemployed workers, as well as retain key
employers.
Job training programs that serve as a pipeline to industry will
encourage business retention and growth.
Specifically, more initiatives are
needed that support training in mathematics, technology, biotechnology and
other sciences. Such training will better position the County as a player in the
knowledge driven economy of the 21st century.
Recommendation #3: Cultivate working and supportive relationships
with the Latino immigrant population.
Census estimates indicate that
Delaware’s Latino population will continue to grow for years to come.
Proactively addressing their needs and finding mechanisms for bringing them
into the social and business mainstream of the community will prove
advantageous to economic development efforts.
Recommendation #4: Build upon the community’s reputation as a
proactive business environment and its well-developed transportation
infrastructure to increase international trade activity.
Implementing
policies that maintain favorable tax incentives and foster diversified business
opportunities should increase foreign investment in the area and provide
significant sources of employment for existing and newly trained workers.
Recommendation #5: Continue support of gaming industry. Enhancing
regulations to attract and retain gaming operations will provide employment
opportunities and a significant revenue source through tourism. In support
the gaming industry, local officials should adopt strategies that have been
35
advocated in other gaming industry cities to ensure that the advantages
outweigh the potential negative effects of gaming operations.30
30
See James H. Johnson, Jr., 1998, Cashing In On Job Opportunities in the Gaming Industry: How Detroit Can Do
It Right Wayne State University College of Urban, Labor and Metropolitan Affairs. Richard C. Van Dusen Forum
on Urban Issues.
36
Appendix A
Table A1: SWOT Results for Wilmington, DE
1. Polity Capital
Strengths
™ County Executive focused on sound fiscal and
budget management via cost cutting and spending
restraints
™ Redevelopment Office created to stimulate job
growth
™ Current strong financials, with reserve balance
™ New Castle County Chamber of Commerce web
site: www.nccc.com
™ State’s reputation as a pro-business environment
™ County Executive web site www.nccde.org;
transparency of government
Weaknesses
™ Wilmington fiscal problems; low revenue base
Opportunities
™ Captive insurance statute
™ Potential for diverse revenue sources from state
funds; assessments, filing fees, general fund
proceeds, infrastructure appropriations
™ Proactively address workforce development needs
by creating additional joint effort training programs
between public, private and education sectors
™ Support for gaming industry
Threats
™ Loss of jobs in the financial services sector may
erode income levels in high wage sector
™ Rising costs anticipated to erode County cash
reserves within 3 years
™ Wilmington has high unemployment and undereducated workforce
2. Physical Capital
Strengths
™ Significant transportation infrastructure
™ Location near the major metropolitan cities
™ Major port city
™ Over 245 regional, district and neighborhood parks
Weaknesses
™ Insufficient public transit to service the poor during
late working hours
Opportunities
™ Strengthen port of entry against terrorist activities
Threats
™ National security – Wilmington Port
3. Financial Capital
Strengths
™ Significant presence of Fortune 500 companies in
Wilmington
™ Favorable usury and corporate franchise tax laws,
and nationally recognized Court of Chancery
™ Christina Gateway Corporation; waterfront
commercial center
™ Port of Wilmington handles considerable domestic
and foreign shipping
™ Experienced Director of Wilmington Office of
Economic Development
™
™
Minority Business Enterprise
World Trade Center Delaware
Weaknesses
™ Wilmington fiscal crisis, including low property tax
revenues
Opportunities
™ Attract foreign investment and increase
international trade through port of entry
™ Enhance information regarding export
opportunities
™ Leverage support of large financial community
™ Diamond Casino Resort
™ Develop competencies of Hispanic-owned
businesses
Threats
™ Substantial increase in illegal immigrants may
cause drain on economy
™ Current laws do not permit the enhancement and
expansion of the gaming industry; potential
competition if both Pennsylvania and Maryland
legalize gambling.
™ New Castle budget deficit within 3 years
4. Human Capital
Strengths
™ Charter School of Wilmington
™ The Brandywine School District
™ Improvement in public school SAT math and
verbal scores
™ Numerous colleges/universities in general
vicinity
™ Unemployment rate for Wilmington
improved significantly in 2005 compared to
2004
™ Diverse workforce of blue and white collar
workers
™ Job training partnerships – Retail Skills Center, Job Corps
Weaknesses
™ Unemployment rate for Wilmington is
consistently higher than that of New Castle
County, state of Delaware and US.
™ Wilmington has significant number of
undereducated
™ Low-income and minority urban
communities have little political clout; crime,
violence and an open drug trade plague
poor neighborhoods
™ High numbers of very young and elderly
populations
Opportunities
™ Diamond Casino Resort
™ Job training of residents in poverty areas
™ Relocation of Blue Cross Blue Shield of
Delaware from New Castle County to
Wilmington
Threats
37
™
™
Additional job cuts following the continued
merger and acquisition of financial
institutions
High crime levels
5. Cultural Capital
Strengths
™ Non-profits devoted to educational, recreational,
artistic and cultural entertainment
™ Revitalization plan for historic neighborhoods,
homes, and buildings
™ Riverfront Wilmington
™ The Delaware History Center
™ Museum of Natural History
™ Kalmar Nyckel
™ Fort Delaware
Weaknesses
™ Lack of historical or cultural institutions that
celebrate and acknowledge the presence of Native
Americans
™ No African-American museum or other entity
illustrating the history and contributions of African
Americans in the area
™ Little focus on diversity in events, festivals, and
web sites
Opportunities
™ Improve awareness of diversity in the community
Threats
™ Increasing racial tensions with growing Hispanic
population
6. Social Capital
Strengths
™ City Mentoring Initiative
™ Parks and Recreating Department
™ Chamber of Commerce holds periodic
networking meetings
™ Boy Scouts and Girl Scouts
™ YMCA
™ Boys and Girls Club
™ Big Brothers and Sisters
™ Debnam House Community Center
™ Girls Inc. of Delaware
™ Strive Youth Programs
™ Urban Promise
™ Urban Youth Center
™ LPGA Urban Youth Golf Program
™ 15 Neighborhood Associations
Weaknesses
™ No social programs focused on celebrating
diversity
™ No social programs supporting the elderly
Opportunities
™ Facilitate ethnic and cultural tolerance
™ Increase services offered to the growing
Latino community
Threats
™ Racial disharmony